DR Gary Ellem from Tom Farrell Institute of Newcastle University says that the Hunter needs to start thinking about the future.
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At the Singleton Business Leaders Luncheon last Thursday He explained how all the major industries in the Hunter left a legacy that started the next major industry movement.
“The first industry was forestry, once that declined there was open grassland that created the massive dairy industry in the Hunter, once dairy became unsustainable farming, cattle and livestock were the mainstay of the economy,” Dr Ellem said.
“Mining is now the major industry with lots of professional services dedicated to it but it has a limited lifespan.
“The question we need to ask is whether enough thought has been given to what the legacy of the mining industry will be.”
Dr Ellem said collaborative planning by government’s and other parties needs to be done so that a transition between industries can happen without a huge impact, particularly on Upper Hunter towns.
His estimate studies showed that livestock was one of the least effective uses of land with less than $1million in revenue per one hectare of land over a period of 25 years, mining registered around $4million per hectare mark (provided that land was viable for mining) while solar was competitive with a return of $1.5million per hectare.
While Dr Ellem mentioned the merits of solar becoming a major industry a lot of things would have to happen for it to claim mining’s current role and that other industries such as tourism would have to increase their income for the Hunter.
Mining and solar do share some similarities in that both require huge capital to start off with - mines having to get their licence and construct the mine while solar sites have to be constructed and installed and hope that the revenue afterwards will recoup the capital,” Dr Ellem said.
He mentioned Andrew Thaler’s plans for a community solar panel farm at Singleton and said that giving people power would spread the benefits of the economy around.
“Government will have to start planning and giving subsides, examples of it in action can be found in Holland where there is legislation that if a wind turbine is within two kilometres of your home they have to offer you the opportunity to have a share in that company,” Dr Ellem said.
“To make solar a big business the manufacturing of solar panels needs to be done here but that can only happen with subsidies, China saw the industry and offered huge subsidies and now is the biggest player when it comes to manufacturing solar panels.”
